The mutual, which runs more than 2,300 food stores and 800 funeral homes across the United Kingdom, posted a £45 million underlying operating loss for the half‑year to 4 July, up from a £32 million loss a year earlier when a cyber‑attack in April 2025 knocked first‑half revenue down by £206 million and erased £80 million of profit.
Despite the larger loss, group‑wide sales rose 2.4% in the period, with food‑store sales increasing 2.6% on the year‑earlier figure, the Co‑op said. The improvement came against a backdrop of weak consumer confidence and £78 million of extra costs, including higher labour taxes.
Allum, who took over as interim chief executive at the end of March following the resignation of former chief executive Shirine Khoury‑Haq, said the first half was marked by “difficult markets and low consumer confidence, especially for food retail”. She added that the retailer had “invested in promotions and in our stores” while “mitigating rising costs”.
The Co‑op also announced plans to cut £200 million in costs this year to offset higher expenses and safeguard long‑term financial stability. The cost‑saving programme is part of a broader effort to restore profitability after the cyber‑attack and a recent defence against claims of a “toxic” workplace environment.
Management turnover has been significant: Khoury‑Haq stepped down in March, former chairwoman Debbie White left in August, and managing director Matt Hood quit earlier in the summer. Allum said the company sees “reasons for confidence” across its portfolio, citing strong growth in online convenience shopping and its funeral services.
Looking ahead, the Co‑op expects a stronger performance in the second half of the financial year, with continued sales growth and improvements in profitability, and it plans to open new stores during the year as part of its expansion strategy.